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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: rrm_bcnu who wrote (2881)	10/14/2007 2:13:49 AM
From: rrufff	Respond to of 5034

10/10 12:39PM DJ SEC Fines Hedge Fund Over Post-Katrina Short Sales By Michael R. Crittenden OF DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--The Securities and Exchange Commission said Wednesday it had reached an $8 million settlement with hedge fund adviser Sandell Asset Management Corp. over improper short sales made in the wake of Hurricane Katrina. The SEC said the firm moved aggressively in the days after the storm to sell short its Hibernia holdings because of concerns that Capital One Financial Corp. (COF) would lower its proposed acquisition price for the New Orleans-based bank because of the massive damage to the area. In doing so, however, the commission said the New York-based fund had improperly marked certain sales of Hibernia Corp. shares as "long", even though the fund was selling the shares short. Additionally, the commission said Sandell personnel had lied to the broker-dealers executing additional trades that they had located Hibernia to borrow to make the trades. "By mismarking certain trades and falsely claiming that firm personnel had located stock to borrow, Sandell Asset Management gained an unfair trading advantage over other market participants," said Scott W. Friestad, associate director of the SEC's division of enforcement. Sandell Asset Management and its top executives agreed to pay more than $8 million to settle the charges, though neither the firm nor its personnel admitted admitting or denying wrongdoing. The settlement included a civil fine of $650,000 for the firm, and a penalty of $190,000 for top executives, including CEO Thomas Sandell. -By Michael R. Crittenden, Dow Jones Newswires; 202-862-9273; michael.crittenden@dowjones.com (END) Dow Jones Newswires

To: rrm_bcnu who wrote (2881)	10/15/2007 4:44:06 PM
From: rrufff	Respond to of 5034

More on manipulative shorting from another message board poster Patchie. SEC Sues Hedge Fund Over Illegal Trades Monday October 15, 3:34 pm ET SEC Sues New York Hedge Fund Alleging Improper Short Sales NEW YORK (AP) -- The Securities and Exchange Commission sued Colonial Investment Management LLC on Monday, alleging the New York hedge fund company made more than $1.48 million in profits from illegal trading. The lawsuit, filed in federal court in Manhattan, alleged Colonial Investment and its Colonial Fund LLC fund improperly used shares purchased in at least 18 registered offerings to cover short sales that occurred in the five business days before the pricing of those offerings. The SEC claims that Colonial violated a rule that prohibits covering of a short sale with securities purchased in a registered offering if the short sale occurred during a restricted period. "Short sellers who violate the rule's prohibitions can profit unfairly because they largely avoid exposure to market risk by using shares purchased at a discount in a registered offering to cover restricted period short sales," the SEC said. Cary G. Brody, a principal of Colonial Management, directed, authorized and supervised trading of the securities, the SEC said. Brody, who also is a defendant in the case, is alleged to have directly benefited from the transactions because he was an investor in the company and his compensation was based in part on its profits, the SEC said. A lawyer for Colonial didn't immediately return a phone call seeking comment Monday. sec.gov The Commission is informed and believes and on that basis alleges that during 2004 and 2005 Defendants may have committed further violations of Rule 105 in connection with additional registered offerings by covering restricted period short sales with shares purchased in the registered offerings. And for all that we will do nothing. They get to keep what we could not yet find (i.e. Fine them a dime for the 10 spot they stole)